Inter-connected Stock Exchange of India

Last updated

Inter-connected Stock Exchange of India Ltd.
Inter-connected Stock Exchange of India (logo).gif
Type Stock Exchange
LocationMumbai, India
Founded1998
Owner Ministry of Finance, Government of India.
Currency Indian rupee (₹)
Website www.iseindia.com

Inter-connected Stock Exchange Ltd. (ISE) is an Indian national-level stock exchange. under the ownership of Ministry of Finance, Government of India. It is responsible for providing trading, clearing, settlement, risk management and surveillance support to its trading members. It started its operation in 1998 [1] in Vashi, Mumbai, [2] and has 841 trading members, who are located in 18 cities. These intermediaries are administratively supported through the regional offices at Delhi, Kolkata, Patna, Ahmedabad, Coimbatore and Nagpur, besides Mumbai. [3]

Contents

The ISE is promoted by 12 regional stock exchanges [4] namely at Bangalore, Bhubaneshwar, Chennai, Kochi, Coimbatore, Guwahati, Indore, Jaipur, Kanpur, Mangalore, Magadh and Vadodara. [5] The participating exchanges of ISE have 4,500 [6] members and listed securities. It is a stock exchange of stock exchanges, [7] members of the stock exchanges being traders on the ISE.

History

At a meeting of the Federation of Indian Stock Exchanges held in October 1996, a steering committee was formed to evolve an Inter-Connected Market System. As a result, Inter-connected Stock Exchange (ISE), which was promoted by 14 regional stock exchanges of the country (excluding Calcutta, Delhi, Ahmedabad, Ludhiana and Pune Stock Exchange, apart from NSE, BSE and OTCEI) was incorporated by SEBI under the Securities Contracts (Regulations) Act, 1956 on 18 November 1998, ISE commenced trading on 26 February 1999.[ citation needed ]

ISE was launched with an objective of converting small, fragmented and illiquid markets into large, liquid national-level markets. ISE is also a professionally managed stock exchange with the Chairman of the Exchange being also a Public Representative Director from its inception. Unfortunately for the RSEs, particularly small brokers, the ISE experiment did not succeed. The daily turnover, which used to be Rs. 1 to 2 crore in the first six months, gradually declined to virtually zero level. Failure of ISE was, due to the bigger brokers of the participating RSEs failing to support any interest in trading on ISE due to commercial considerations. As a result, it becomes virtually impossible for ISE to create any worthwhile liquidity in its markets in competition with the breadth and depth of NSE and BSE. Markers continued to be fragmented as the participating RSEs did not close down their regional segments. All the while the small fragmented and illiquid market failed to emerge. ISE has also not succeeded in getting companies listed on it despite the stipulation by SEBI that the State of Maharashtra constituted the regional area for ISE due to lack of regulatory support for making it applicable to over 3,000 already listed companies in the State of Maharashtra[ citation needed ]. SEBI permitted ISE to exit bourse business as per the SEBI order on 8 December 2014. [8]

Services

Membership

A registered Member is entitled to execute trades and to clear and settle trades executed on his own account as well as on account of his clients in the Capital Markets Segment. Membership of the Exchange is open to corporate entities, individuals and partnership firms who fulfill the eligibility criteria laid down by SEBI and ISE

Depository services

Inter-connected Stock Exchange is a Depository Participant of Central Depository Service (India) Limited (CDSL) [9] and National Securities Depository Limited (NSDL). [10] ISE-DP has branches at Delhi, Kolkata, Patna, Guwahati, Ahmedabad, Hyderabad, Nagpur, Coimbatore, Tirunelveli and 155 Collection Centers across the country. Following depository services of CDSL are provided to the individual and corporate investors by ISE-DP: [11]

Research and Training

The ISE Training centre was established in November, 2000. [12] It is a classroom training program on subjects related to the capital market, such as equities trading and settlement procedure, derivatives trading, day trading, arbitrage operations, technical analysis, financial planning, and compliance requirement. [13] ISE also offers Joint Certification Training programmes in association with its partners.

Listing

The trading platform of ISE enables the 'Indian companies' to access equity capital, by providing a liquid and well-regulated market. [14] Scrips which are already being traded on stock exchanges across India are traded on the Exchange. ISE's trading members in India trade on the scrips and provide liquidity and visibility to such scrips.

See also

Related Research Articles

<span class="mw-page-title-main">Securities and Exchange Board of India</span> Regulatory body for securities in India

The Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodity market in India under the ownership of Ministry of Finance within the Government of India. It was established on 12 April 1988 as an executive body and was given statutory powers on 30 January 1992 through the SEBI Act, 1992.

<span class="mw-page-title-main">Bombay Stock Exchange</span> Indian stock exchange in Mumbai, India

BSE Limited, also known as the Bombay Stock Exchange (BSE), is an Indian stock exchange which is located on Dalal Street in Mumbai. Established in 1875 by cotton merchant Premchand Roychand, a kumauni businessman, it is the oldest stock exchange in Asia, and also the tenth oldest in the world. The BSE is one of the world's largest stock exchanges by market capitalization.

<span class="mw-page-title-main">National Stock Exchange of India</span> Indian stock exchange

National Stock Exchange of India Limited (NSE) is one of the leading stock exchanges in India, based in Mumbai. NSE is under the ownership of various financial institutions such as banks and insurance companies. It is the world's largest derivatives exchange by number of contracts traded and the third largest in cash equities by number of trades for the calendar year 2022. It is one of the largest stock exchanges in the world by market capitalization. NSE's flagship index, the NIFTY 50, a 50 stock index is used extensively by investors in India and around the world as a barometer of the Indian capital market. The NIFTY 50 index was launched in 1996 by NSE.

The Madras Stock Exchange (MSE) was a stock exchange in Chennai, India. The now defunct MSE was the fourth stock exchange to be established in the country and the first in South India. It had a turnover (2001) of ₹ 3,090 crore, but was a fraction of the turnover generated by the Bombay Stock Exchange and National Stock Exchange of India. The turnover of the stock exchange was 19,907 Crore as of the financial year 2012.

Cochin Stock Exchange was an Indian stock exchange in Kochi, Kerala fully owned by Government of India. It was incorporated in 1978. At its peak, it had almost 500 Indian companies listed, and with a daily turnover of ₹70–₹100 crore, it was the fourth largest exchange in India.

In India, a Depository Participant (DP) is described as an Agent of the depository. They are the intermediaries between the depository and the investors. The relationship between the DPs and the depository is governed by an agreement made between the two under the Depositories Act. In a strictly legal sense, a DP is an entity who is registered as such with SEBI under the sub section 1A of Section 12 of the SEBI Act. As per the provisions of this Act, a DP can offer depository-related services only after obtaining a certificate of registration from SEBI. As of 2012, there were 288 DPs of NSDL and 563 DPs of CDSL registered with SEBI.

Madhya Pradesh Stock Exchange (MPSE) was a stock exchange located at Indore, Madhya Pradesh, India. It was a SEBI recognized Permanent Stock Exchange, until its de-recognition in 2015. Established in 1919, it was 3rd oldest stock exchange in India, and a leading stock exchange under outcry system.

<span class="mw-page-title-main">Delhi Stock Exchange</span>

Delhi Stock Exchange (DSE) is a defunct stock exchange located in New Delhi.

Guwahati Stock Exchange (GSE) is a defunct stock exchange located in Gauhati, Assam.

Saurashtra Kutch Stock Exchange Limited, popularly called Stock Exchange, or SKSE) is one of three Indian stock exchange in Gujarat. It is located at Sadar Bazaar, Rajkot, India. Saurashtra Kutch Stock Exchange Ltd was incorporated in July 1989 and got recognition from the Government of India. The recognition have been renewed from time to time by the Central Government and SEBI. It is under the ownership of Ministry of Finance of the Government of India.

National Securities Depository Limited (NSDL) is an Indian central securities depository, based in Mumbai. It was established in August 1996 as the first electronic securities depository in India with national coverage. It was established based on a suggestion by a national institution responsible for the economic development of India. It's demat accounts now hold assets worth $4 trillion.

<span class="mw-page-title-main">C. B. Bhave</span> Indian financial regulator

Chandrasekhar Bhaskar Bhave is an Indian financial regulator. He was appointed as Chairman of the Securities and Exchange Board of India (SEBI) in February 2008 for a period of three years. He was succeeded by Upendra Kumar Sinha as the chairman of SEBI after his tenure. He was SEBI's senior executive director from 1992 - 1996. After that he became Chairman and Managing Director of the then newly created National Securities Depository Limited (NSDL). He is also member of the governments technology advisory group, TAGUP. He is the chairperson of the Indian Institute for Human Settlements (IIHS).

Commodity trading in India has a long history. In fact, commodity trading in India started much before it started in many other countries. However, years of foreign rule, droughts and periods of scarcity and government policies caused the commodity trading in India to diminish.

List of Indian stock exchange may refer to one of the 7 official operating stock and commodity exchanges by SEBI or the numerous defunct ones.

Magadh Stock Exchange Association Ltd (MSEA) is located in Patna, India. It was established in the year 1986. It is one among the 25 odd regional stock exchanges in India. The exchange was disbanded on 3 September 2007 by Securities and Exchange Board of India (SEBI).

<span class="mw-page-title-main">Ashish Chauhan</span> Indian business executive and administrator

Ashishkumar Chauhan is an Indian business executive, administrator and current Chancellor of University of Allahabad. In July 2022, Chauhan is managing director and chief executive officer of National Stock Exchange (NSE). He was the managing director and chief executive officer of the Bombay Stock Exchange (BSE). and his term will complete in November 2022. He also serves as the member of Governing council of one of the premier B school in India - IIM Raipur. Ashish is best known as the father of modern financial derivatives in India, and is considered one of the foremost experts in financial market policies, Information technology, organized retail, telecommunications and Indian social issues.

Religare Enterprises Limited (REL) is an Indian investment and financial services holding company, headquartered in New Delhi. REL is listed on National Stock Exchange of India and Bombay Stock Exchange. It is registered with the Reserve Bank of India (RBI).

<span class="mw-page-title-main">Central Depository Services</span> Indian Security Depository

Central Depository Services (India) Ltd. (CDSL), the first listed Indian central securities depository, was founded in 1999.

Angel One Limited, formerly known as Angel Broking Limited, is an Indian stockbroker firm established in 1996. The company is a member of the Bombay Stock Exchange, National Stock Exchange of India, National Commodity & Derivatives Exchange Limited and Multi Commodity Exchange of India Limited. It is a depository participant with Central Depository Services Limited (CDSL).

The NSE co-location scam relates to the market manipulation at the National Stock Exchange of India, India's leading stock exchange. Allegedly select players obtained market price information ahead of the rest of the market, enabling them to front run the rest of the market, possibly breaching the NSE's purpose of demutualisation exchange governance and its robust transparency-based mechanism. The alleged connivance of insiders by rigging NSE's algo-trading and use of co-located servers ensured substantial profits to a set of brokers. This widespread market fraud came to light when markets' regulator, the Securities and Exchange Board of India (SEBI), received the first anonymous complaint through a whistle-blower's letter in January 2015. The whistle-blower alleged that trading members were able to capitalise on advance knowledge by colluding with some exchange officials. The overall default amount through NSE's high-frequency trading (HFT) is estimated to be ₹500 billion over five years.

References

  1. ↑ "Inter-connected exchange to start operations in May". Expressindia.com. 24 January 1998. Retrieved 7 June 2012.
  2. ↑ Inter Connected Stock Exchange (1 January 1970). "interconnected stock exchange address - Google Maps". Google Maps. Retrieved 7 June 2012.
  3. ↑ "Interconnected Stock Exchange of India Limited". Lawyersclubindia.com. Retrieved 7 June 2012.
  4. ↑ "Rediff on the NeT Business Interview/Joseph Massey". Rediff.com. 25 September 1998. Retrieved 7 June 2012.
  5. ↑ Archived 19 July 2011 at the Wayback Machine
  6. ↑ V S Rama Rao. "Interconnected Stock Exchange of India and Regional Stock exchanges". Citeman.com. Archived from the original on 22 July 2012. Retrieved 7 June 2012.
  7. ↑ Pathak (2007). The Indian Financial System: Markets, Institutions And Services, 2/E. Pearson Education India. p. 201. ISBN   978-81-7758-562-9.
  8. ↑ "Sebi approves exit of Interconnected Stock Exchange". Business Standard. 8 December 2014. Retrieved 18 June 2018.
  9. ↑ "Depository Services: Basics to Benefits". Financialexpress.com. 26 May 2002. Retrieved 7 June 2012.
  10. ↑ "NSDL". NSDL. Retrieved 7 June 2012.
  11. ↑ "Inter-connected Stock Exchange of India Ltd". www.iseindia.com. Retrieved 30 November 2015.
  12. ↑ Archived 3 March 2011 at the Wayback Machine
  13. ↑ "Training brochure" (PDF). Retrieved 12 March 2021.
  14. ↑ Archived 21 July 2011 at the Wayback Machine
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.